SPARKS are flying over news that price controls on pre-payment meters for electricity and gas consumers are to be scrapped.

Consumer watchdog energywatch North West has slammed the decision by industry regulator Ofgem and claims that the move is likely to mean price increases for some 3.7 million electricity and 1.8 million gas users.

David Sidebottom, regional director for energywatch North West, said: ''Ofgem has taken a wholly unjustifiable leap of faith that the market, left to its own devices, will deliver for pre-payment meter users.

''Most of the benefits of competition that have filtered down to pre-payment meter users have been the result of strong regulatory price controls.

''Ofgem is giving those controls away and I have a real fear that we will see energy suppliers put up prices for this important group of consumers.''

Andrew Stunnell, Labour MP for Hazel Grove, has tabled a Commons motion which opposes the lifting of price controls.

According to Mr Stunnell the recent proposals by Ofgem will cause financial hardship to nearly 2.5 million consumers who use pre-payment meters and earn less than £12,500 per annum.

He is supported by, among others, Jim Dobbin from Heywood and Middleton, Patsy Calton who represents Cheadle and Brian Iddon from Bolton South East.